COMPANY INFORMATION - Shezan

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Board of Directors:

Mr. Muneer Nawaz ChairmanMr. Humayun A. Shahnawaz Chief ExecutiveMr. M. NaeemMr. Abid NawazMr. Rashed Amjad KhalidMs. Manahil ShahnawazMr. Shahid Hussain Jatoi (Independent Director)Mr. Abdul Hamid Ahmed Dagia (Independent Director)Mr. Nauman Khalid (Independent Director)

Chief Financial Officer:

Mr. Faisal Ahmad Nisar, FCA

Company Secretary:

Mr. Khurram Babar

Audit Committee:

Mr. Shahid Hussain Jatoi ChairmanMr. Muneer Nawaz MemberMr. M. Naeem MemberMr. Rashed Amjad Khalid Member

Human Resource & Remuneration Committee:

Mr. Nauman Khalid ChairmanMr. Muneer Nawaz MemberMr. M. Naeem MemberMr. Humayun A. Shahnawaz Member

Registered Office / Head Office:

56 - Bund Road, Lahore-54500.

Phones: (042) 37466900-04.

Faxes: (042) 37466899 & 37466895.

E-mail: [email protected]

Factories:

• 56 - Bund Road, Lahore - 54500.Phones: (042) 37466900-04.Faxes: (042) 37466899 & 37466895.E-mail: [email protected]

• Plot No. L-9, Block No. 22,Federal “B”, Industrial Area, Karachi-75950.Phones: (021) 36344722-23.Fax: (021) 36313790.E-mail: [email protected]

• Plot No. 33-34, Phase III,Hattar Industrial Estate, Hattar.Phones: (0995) 617158 & 617343.Fax: (0995) 617342.E-mail: [email protected]

Website:

www.shezan.pk

Auditors:

EY Ford Rhodes, Chartered Accountants,96-B-1, 4th Floor, Pace Mall Building,M. M. Alam Road, Gulberg II, Lahore.

Share Registrar:

Corplink (Private) Limited,Wings Arcade, 1-K, Commercial,Model Town, Lahore.

Legal Advisors:

Cornelius, Lane & Mufti,Nawa-e-Waqt Building,Shahrah-e-Fatima Jinnah, Lahore.

Bankers:

United Bank Limited.MCB Bank Limited.National Bank of Pakistan.Bank Al-Habib Limited.Habib Bank Limited.Bank Alfalah Limited.Allied Bank Limited.Habib Metropolitan Bank Limited.

COMPANY INFORMATION

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DIRECTORS’ REPORTTO THE MEMBERS

On behalf of the Board of Directors of Shezan International Limited, we are pleased to present the Directors’ Report together with condensed Interim Financial Statements (Un-audited) of the Company for the nine month period ended 31 March 2021.

During the quarter under review, the Company posted sales growth of almost 18% despite unfavorable conditions. Shezan also succeeded in increasing exports and achieved a healthy 81% growth in exports during the quarter. With this increase in total sales, our Company showed a turnaround and posted a profit compared to the corresponding quarter in the previous year.

OPERATIONAL OVERVIEW

The Company’s performance during the 9 month period under review remained satisfactory as summarized below:

2021 2020

Particulars Rupees in thousand

Revenue from contracts with customers–net 4,428,415 4,898,010Gross profit 921,292 573,271Net profit / (loss) after tax for the period 103,125 (463,134)Earnings / (loss) per share - (Rupees) 11.74 (52.72)

The Company’s total revenue dropped during this 9 month period as compared to the corresponding period of the last year. The pandemic persists and has continued to halt economic activity in Pakistan, especially our target markets like school/college canteens, parks and zoos, restaurants and other recreational activities. Additionally, as travel has come to a minimum, our sales from the transport sector have dwindled. In spite of decreased sales, the Company showed encouraging results and good growth in the gross profit due to price rationalization and cost efficiency measures.

The finance cost for the period under review significantly decreased as compared to the corresponding period because the State Bank of Pakistan reduced the discount rate in aggregate by 6.25%. In addition, the Company has obtained a long-term loan against the refinance scheme for salaries and wages introduced by the State Bank of Pakistan at a very marginal rate of 0.45% per annum through effective negotiations.

FUTURE PROSPECTS

Pakistan is currently experiencing the third wave of Covid-19 which is being seen as deadlier than the first two waves and a sharp spike in the Covid positivity rate is being observed. The vaccination process of the Covid-19 has also been started. We are hopeful that things will be under control when the vaccination process will move further.

Although the last 9 months have shown a decrease in sales, this past quarter Q3 has shown a positive sales growth. As the global pandemic normalizes, the economic effect from Covid-19 will get some relief when educational institutions, parks, etc reopen. We are confident we will be able to continue this momentum of increased sales into Q4 and will recover the revenue deficit of July – Dec 2020. This upcoming quarter is our peak season and, continuing precedent, we expect robust sales and profit. We are also concentrating on finding new export avenues to introduce our products and have found success in partnering with distributors in new countries.

VOTE OF THANKS

We take this opportunity to thank our shareholders for their confidence, valued customers for the trust they continue to place in us, the management team for its sincere efforts, the employees for their commendable services, the Board of Directors for their continuous guidance, and all stakeholders - Bankers, Dealers, Vendors, Associates.

For and on behalf of the Board

Muneer Nawaz Humayun A. ShahnawazChairman Chief Executive Officer

Lahore:27 April 2021.

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITIONAS AT 31 MARCH 2021

(Un-Audited) (Audited) 31 March 30 June 2021 2020 Note Rupees in thousand

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 6 1,640,447 1,863,439 Long-term investment 7 3,120 2,650 Long-term receivable 29,644 27,930 Long-term deposits 3,330 4,388 Deferred taxation 165,537 181,028

1,842,078 2,079,435 CURRENT ASSETS

Stores and spares 125,126 119,002 Stock-in-trade 1,497,256 1,527,152 Right to recover asset 15,551 16,162 Trade debts 546,650 156,598 Loans and advances 227,700 125,595 Trade deposits and short term prepayments 11,523 6,823 Interest accrued – 159 Income tax recoverable 589,211 535,670 Cash and bank balances 112,322 202,541

3,125,339 2,689,702

TOTAL ASSETS 4,967,417 4,769,137

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Share capital 87,846 87,846 Capital reserve 5,000 5,000 Revenue reserves 1,960,402 1,856,807

TOTAL EQUITY 2,053,248 1,949,653

NON-CURRENT LIABILITIES

Long-term loan 8 205,113 291,300 Lease liability 46,899 54,165 Deferred grant 1,628 2,709

253,640 348,174 CURRENT LIABILITIES

Trade and other payables 657,975 738,534 Contract liabilities 49,621 108,878 Unclaimed dividend 4,845 4,880 Interest accrued on borrowings 27,364 42,011 Current portion of long-term loan 8 393,513 233,871 Current portion of lease liability 10,649 6,049 Current portion of deferred grant 9,015 5,045 Short-term borrowings 9 920,804 744,035 Refund liability 103,687 108,370 Provision for taxation 483,056 479,637

2,660,529 2,471,310

2,914,169 2,819,484 CONTINGENCIES AND COMMITMENTS 10

TOTAL EQUITY AND LIABILITIES 4,967,417 4,769,137 The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.

Chief Financial Officer DirectorChief Executive

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Nine month period ended Three month period ended 31 March 31 March 2021 2020 2021 2020 Note Rupees in thousand Rupees in thousand

Revenue from contracts with customers-net 4,428,415 4,898,010 1,590,204 1,352,685

Cost of revenue 3,507,123 4,324,739 1,292,144 1,239,402

Gross profit 921,292 573,271 298,060 113,283

Distribution costs 480,701 600,084 163,144 186,931

Administrative expenses 200,211 241,091 61,265 70,682

Other operating expenses 57,001 73,570 20,504 25,292

Other income (29,045) (41,275) (9,115) (10,095)

708,868 873,470 235,798 272,810

Operating profit / (loss) 212,424 (300,199) 62,262 (159,527)

Finance costs 90,389 159,720 30,327 62,867

Profit / (loss) before taxation 122,035 (459,919) 31,935 (222,394)

Taxation 18,910 3,215 (8,509) 1,113

Net profit / (loss) for the period 103,125 (463,134) 40,444 (223,507)

Other comprehensive income / (loss)

Other comprehensive income not to be reclassified to

profit or loss in subsequent periods (net of tax):

Unrealized profit / (loss) on remeasurement of

investments-available for sale 470 265 (580) 219

Total comprehensive income / (loss) 103,595 (462,869) 39,864 (223,288)

Earnings / (loss) per share - basic and

diluted (Rupees) 11 11.74 (52.72) 4.60 (25.44)

The annexed notes from 1 to 16 form an integral part of these condensed interim financial statements.


CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UN-AUDITED) FOR THE NINE MONTH PERIOD ENDED 31 MARCH 2021

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Capital Reserve Revenue Reserve Unrealized Gain on Share Merger General remeasurement of Unappropriated Capital Reserve Reserve AFS Investments profit / (loss) Total R u p e e s i n t h o u s a n d

Balance as at 01 July 2019 87,846 5,000 2,000,000 103 140,631 2,233,580

Final dividend @ Rs. 5.5/- per share

for the year ended 30 June 2019 – – – – (48,315) (48,315)

Loss for the nine month period

ended 31 March 2020 – – – – (463,134) (463,134)

Other comprehensive income – – – 265 – 265

Total comprehensive loss – – – 265 (463,134) (462,869)

Balance as at 31 March 2020 87,846 5,000 2,000,000 368 (370,818) 1,722,396

Balance as at 01 July 2020 87,846 5,000 2,000,000 275 (143,468) 1,949,653

Profit for the nine month period

ended 31 March 2021 – – – – 103,125 103,125

Other comprehensive income – – – 470 – 470

Total comprehensive income – – – 470 103,125 103,595

Balance as at 31 March 2021 87,846 5,000 2,000,000 745 (40,343) 2,053,248



CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY (UN-AUDITED) FOR THE NINE MONTH PERIOD ENDED 31 MARCH 2021

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Nine month period ended 31 March 2021 2020 Rupees in thousand

CASH FLOWS FROM OPERATING ACTIVITIES

Cash generated from operations:

Profit / (loss) before taxation 122,035 (459,919)Adjustments to reconcile profit / (loss) before tax to net cash: Depreciation 209,546 244,600 Finance costs 91,935 157,038 Profit on bank deposits (257) (4,389)Un-winding of interest on long-term receivables (3,904) – Provision for doubtful debts 1,663 5,115 Loss on disposal of property, plant and equipment 21,378 2,937

320,361 405,301 Operating profit / (loss) before working capital changes 442,396 (54,618)

(Increase) / decrease in current assets:

Stores and spares (6,124) (16,160)Stock-in-trade 29,896 (74,240)Right-to-recover asset 611 996 Trade debts (391,715) (131,693)Loans and advances (102,105) (268,454)Trade deposits and short-term prepayments (4,700) (2,811)

(474,137) (492,362)Increase / (decrease) in current liabilities:

Trade and other payables (80,559) (294,809)Contract liabilities (59,257) (52,115)Refund liability (4,683) (2,565)

(144,499) (349,489)Cash generated from operations (176,240) (896,469)

Interest / markup paid (106,581) (110,185)Profit on bank deposits received 416 5,026 Income tax paid (53,541) (73,779)Long-term receivables received 2,190 6,385 Long-term deposits paid 1,058 151 Net cash used in operating activities (332,698) (1,068,871)

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (31,190) (290,308)Sale proceeds from disposal of property, plant and equipment 23,257 58,730

Net cash used in investing activities (7,933) (231,578)

CASH FLOWS FROM FINANCING ACTIVITIES

New leases acquired during the period – 79,870 Repayment of long-term loan (144,562) – Long-term loan obtained 220,906 (105,720)Repayment of lease liability (2,666) (3,648)Short-term borrowings obtained-net 176,769 1,207,275 Dividends paid (35) (47,540)

Net cash generated from financing activities 250,412 1,130,237

Net decrease in cash and cash equivalents (90,219) (170,212)

Cash and cash equivalents at the beginning of the period 202,541 233,723 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 112,322 63,511


CONDENSED INTERIM STATEMENT OF CASH FLOWS (UN-AUDITED) FOR THE NINE MONTH PERIOD ENDED 31 MARCH 2021


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1. THE COMPANY AND ITS OPERATIONS

The Company is a Public Limited Company incorporated in Pakistan and is listed on the Pakistan Stock Exchange Limited. The registered office of the Company is situated at 56 - Bund Road, Lahore, Pakistan. It is engaged in the manufacturing, trading and sale of juices, pickles, jams, ketchups etc., based upon or derived from fruits and vegetables. Following are the business units of the Company along with their respective locations:

BUSINESS UNIT ADDRESS

Production Plant and Head Office 56-Bund Road, Lahore Production Plant Plot No. 33-34, Phase III, Hattar Industrial Estate, Hattar Production Plant Plot L-9, Block No. 22, Federal B Industrial Area, Karachi 1.2 Impact of COVID-19 on the condensed interim financial statements

The World Health Organization declared COVID-19 a global pandemic on 11 March 2020. Accordingly, on 20 March 2020, the Government of Pakistan announced temporary lock down as a measure to reduce the spread of COVID-19. The outbreak of COVID-19 has had a distressing impact on overall demand in the global economy with notable downgrade in growth forecast.

The Company’s management is fully cognizant of the business challenges posed by the COVID-19

outbreak and closely monitoring the possible impacts on the Company’s operations and liquidity positions and believes that its current policies for managing credit, liquidity and market risk are adequate in response to current situation.

Further, subsequent to year end, the situation has improved with the easing of lock down and re-opening

of the businesses. The management has assessed the impact of the COVID-19 on the condensed interim financial statements

and believes that the revenue of the Company has shown a decrease in comparison to the prior period due to COVID-19. Accordingly, the management has taken measures to reduce the expenses during the period. Further, the Company has obtained loans under Refinance Scheme for Payment of Wages and Salaries to Workers and Employees of Business Concerns offered by State Bank of Pakistan to mitigate the effect of COVID-19 on employment in Pakistan which carry mark-ups at below market rate as further explained in Note 8 to these condensed interim financial statements.

A part from the above, the management believes that there is no significant financial impact of COVID-19 on the carrying amounts of assets, liabilities, income or expenses which may require specific disclosures.

2. STATEMENT OF COMPLIANCE

2.1 These condensed interim financial statements of the Company for the nine month period ended 31 March 2021 have been prepared in accordance with the Accounting and Reporting Standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

– International Accounting Standard (IAS) 34, ‘Interim Financial Reporting’, issued by the International

Accounting Standards Board (IASB) as notified under the Companies Act, 2017; and – Provisions of and directives issued under the Companies Act, 2017. Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements

of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS (UN-AUDITED)FOR THE NINE MONTH PERIOD ENDED 31 MARCH 2021

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2.2 These condensed interim financial statements do not include all the information and the disclosures required in the annual audited financial statements and should be read in conjunction with annual audited financial statements of the Company for the year ended 30 June 2020.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of computation adopted in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the annual financial statements for the year ended 30 June 2020, except as follows:

3.1 New standards, interpretations, amendments and improvements effective during current period

The accounting policies adopted are consistent with those of the previous financial year, except for the following new and amended standards and interpretations effective for annual period beginning on 01 July 2020, as listed below. The Company has not early-adopted any other standard, interpretation, amendment and improvement that has been issued but is not yet effective.

Standard, Interpretation and Amendment

IFRS 3 Business combinations - Definition of a business (Amendments) IFRS 9, IAS 39 and IFRS 7 Interest rate benchmark reform (Amendments) IAS 1 and IAS 8 Definition of material (Amendments) IFRS 16 COVID-19 related rent concessions (Amendments) The adoption of the above standards, amendments and interpretations to the accounting standards did

not have any material effect on the Company’s condensed interim financial statements. In addition to the above new standards and amendments to standard and interpretations, the revised

Conceptual Framework for Financial Reporting (the Conceptual Framework) issued by IASB has also become effective during the period for preparers of financial statements who develop accounting policies based on the Conceptual Framework. The revised Conceptual Framework is not a standard and none of the concepts override those in any standard or any requirements in a standard. The purpose of the Conceptual Framework is to assist IASB in developing standards, to help preparers develop consistent accounting policies if there is no applicable standard in place and to assist all parties to understand and interpret the standards.

3.2 Standards, interpretation and amendments to approved accounting standards that are not yet effective

The following standards, amendments and interpretations with respect to the approved accounting standards as applicable in Pakistan would be effective from the dates mentioned below against the respective standard, interpretation and amendment:

Effective date (annual periods Standard, Interpretation and Amendment beginning on or after) IFRS 3 Reference to the conceptual framework (Amendments) 01 January 2022 IFRS 10 and IAS 28 Sale or contribution of assets between an investor and its associate or joint venture (Amendments) Not yet finalised IAS 1 Classification of liabilities as current or non-current (Amendments) 01 January 2023 IAS 16 Proceeds before intended use (Amendments) 01 January 2022 IAS 37 Onerous contracts – Cost of fulfilling a contract (Amendments) 01 January 2022

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The above new amendments to standards and interpretations are not expected to have any material impact on the Company’s financial statements in the period of initial application.

In addition to the above new standards and amendments to standard and interpretations, improvements

to various accounting standards have also been issued by the IASB in May 2020. Such improvements are generally effective for accounting periods beginning on or after 01 January 2022. The Company expects that such improvements to the standards will not have any material impact on the Company’s financial statements in the period of initial application.

Further, the following new standards have been issued by IASB which are yet to be notified by the Securities

and Exchange Commission of Pakistan (SECP) for the purpose of applicability in Pakistan. Effective date (annual periods Standard beginning on or after) IFRS 1 First time adoption of International Financial Reporting Standards 01 January 2009 IFRS 17 Insurance Contracts 01 January 2023

4. TAXATION, WORKERS’ WELFARE FUND AND WORKERS’ PROFIT PARTICIPATION FUND

Provisions in respect of Workers’ Welfare Fund, Workers’ Profit Participation Fund and Taxation are estimated based on management judgment and prevailing laws, these are subject to final adjustments in the annual audited financial statements.

5. SEASONALITY OF OPERATIONS

The quarterly results of the Company are subject to seasonal fluctuations due to variation in demand of the main products (juices, squashes and syrups).

6. PROPERTY, PLANT AND EQUIPMENT

The additions / (deletions) / transfers (at cost), made during the nine month period ended 31 March 2021(un audited) are as follows:

Deletions/ Additions Transfers Rupees in thousand

Owned assets

Plant and machinery 17,088 (13,525) Motor vehicles – (7,701) Electric equipment 2,267 (1,844) Computers and accessories – (464) Empty bottles, shells, pallets and barrels 15,502 (88,779)

34,857 (112,313)

Capital work in progress

Plant and machinery 10,839 (14,677) Buildings on freehold land 773 (602)

11,612 (15,279)

46,469 (127,592)


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7. LONG TERM INVESTMENT - AVAILABLE FOR SALE

Quoted - Modaraba

BRR Guardian Modaraba - Credit rating ‘A’ 305,000 (30 June 2020: 305,000) certificates of Rs. 10/- each 7.1 2,375 2,375 Gain on remeasurement 745 275

3,120 2,650

7.1 The above investment represents 0.32% (30 June 2020: 0.35%) of the issued certificate capital of the Modaraba. 7.2 This investment is placed under a shariah permissible arrangement.


8. LONG TERM LOAN - SECURED

Long-term loan 8.1 598,626 525,171 Less: Current maturity shown under current liabilities (393,513) (233,871)

205,113 291,300

8.1 Loans from banking institutions - secured

Loan Amount Note Opening Received Repaid Closing

Rupees in thousand

Loan I 8.1.1 422,882 – 105,721 317,161 Loan II 8.1.2 102,289 62,267 21,250 143,306 Loan III 8.1.3 – 158,639 20,480 138,159

525,171 220,906 147,451 598,626 8.1.1 This represents long term loan obtained from a commercial bank, payable in five equal semi annual

installments with a grace period of six months. The rate of markup is 3 months KIBOR plus 0.25% per annum (30 June 2020: 3 months KIBOR plus 0.25% per annum) payable semiannually. The facility is secured against a first exclusive registered charge on the plant and machinery up to Rs. (thousand) 733,334 (30 June 2020: Rs. (thousand) 733,334).

8.1.2 This represents loan obtained from a commercial bank under Refinance Scheme for Payment of Wages and Salaries to Workers and Employees of Business Concerns (the Scheme) offered by State Bank of Pakistan to mitigate the effect of COVID-19 on employment in Pakistan. The facility has an aggregate sanctioned limit of Rs. (thousand) 170,000 (30 June 2020: Rs. (thousand) 170,000). The rate of markup is SBP plus 1.95% per annum (30 June 2020: SBP plus 1.95% per annum) payable quarterly. The facility is secured against initial ranking charge on plant and machinery upto Rs. (thousand) 227,000 (30 June 2020: Rs. (thousand) 227,000). The difference between cash received and present value of cash outflow upon

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initial recognition has been recognised as deferred grant in accordance with the Circular No. 11 / 2020 dated 17 August 2020 issued by the Institute of Chartered Accountants of Pakistan.

8.1.3 This represents loan obtained from a commercial bank under Refinance Scheme for Payment of Wages and Salaries to Workers and Employees of Business Concerns (the Scheme) offered by State Bank of Pakistan to mitigate the effect of COVID-19 on employment in Pakistan. The facility has an aggregate sanctioned limit of Rs. (thousand) 170,000 (30 June 2020: Rs. (thousand) 170,000). The rate of markup is SBP plus 0.45% per annum payable quarterly. The facility is secured against initial ranking charge on plant and machinery upto Rs. (thousand) 227,000 (30 June 2020: Rs. (thousand) 227,000). The difference between cash received and present value of cash outflow upon initial recognition has been recognised as deferred grant in accordance with the Circular No. 11 / 2020 dated 17 August 2020 issued by the Institute of Chartered Accountants of Pakistan.

9. SHORT TERM BORROWINGS - SECURED

The aggregate short-term borrowings available from commercial banks under mark-up / interest arrangements are Rs. (thousand) 2,625,000 (30 June 2020: Rs. (thousand) 2,625,000). The un-utilized portion of the said facility amounts to Rs. (thousand) 1,704,196 (30 June 2020: Rs. (thousand) 1,880,965).

The rate of mark-up / interest on short-term borrowings ranges between 3 months KIBOR plus 0.05% to 1

month / 3 months KIBOR plus 0.50% (30 June 2020: 1 month / 3 months KIBOR plus 0.05% to 1 month / 3 months KIBOR plus 0.50%), payable quarterly.

The facilities are secured against first registered joint pari passu hypothecation and ranking charge on current

assets of the Company up to Rs. (thousand) 3,848,000 (30 June 2020: Rs. (thousand) 3,848,000) and Rs. (thousand) Nil (30 June 2020: Rs. (thousand) 1,067,000).

The un-utilized facility for opening letters of credit and for guarantees amounts to Rs. (thousand) 520,600 (30

June 2020: Rs. (thousand) 528,414) and Rs. (thousand) 185,162 (30 June 2020: Rs. (thousand) 80,692), respectively.

10. CONTINGENCIES AND COMMITMENTS

10.1 Contingencies

There has been no change in the status of the contingencies reported in the annual audited financial statements for the year ended 30 June 2020.

10.2 Commitments

(i) Commitments in respect of letters of credit established for the import of raw and packing materials, amounted to Rs. (thousand) 29,400 (30 June 2020: Rs. (thousand) 21,586).

(ii) Counter-guarantees in favor of banks in the ordinary course of business, amounted to Rs. (thousand)

74,838 (30 June 2020: Rs. (thousand) 52,089).


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(Un-Audited) Nine month period ended Three month period ended 31 March 31 March 2021 2020 2021 2020

11. EARNINGS / (LOSS) PER SHARE - BASIC AND DILUTED

Profit / (loss) after taxation attributable to ordinary shareholders (Rupees in thousand) 103,125 (463,134) 40,444 (223,507)

Weighted average number of ordinary shares at the end of the period (in thousand) 8,785 8,785 8,785 8,785

Earnings / (loss) per share-basic and diluted (Rupees) 11.74 (52.72) 4.60 (25.44)

11.1 No fully diluted earnings per share has been disclosed as the Company has not issued any instrument

which would have an impact on earnings per share, when exercised.

12. NON TRANSFER OF BONUS SHARES TO INDIVIDUAL SHAREHOLDERS

During the year ended 30 June 2015, the Company issued 726,000 bonus shares @ 10% of its then paid-up capital on the book closure date of 23 October 2014. In accordance with the provisions of section 236M of the Income Tax Ordinance, 2001, the Company was required to collect tax from its shareholders @ 5% on the value of bonus shares, determined on the basis of the end price of the first day of book closure.

However, a number of shareholders of the Company have filed a suit against the Federation of Pakistan, competent authorities and the Company, before the Honorable Sindh High Court, challenging the levy of tax under the above referred section. Since the matter is subjudice before the Honorable Sindh High Court, the Company has retained 5% of the bonus shares issued to plaintiff shareholders.

13. TRANSACTIONS WITH RELATED PARTIES

The related parties and associated undertakings comprise related group companies, associates, staff provident fund, directors and key management personnel. Details of transactions with them are as follows:

(Un-Audited) Nine month period ended 31 March 2021 2020 Transactions during the period: Rupees in thousand

Associated undertakings

Purchases of raw materials 274,932 428,430

Sales of finished goods 136 –

Royalty charged 35,258 52,452

Purchases/repairs of electric equipment/vehicles 26 5

Contributions to staff provident fund 4,410 4,924

Remuneration and benefits of directors, Chief

Executive and key management personnel 31,728 35,412

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(Un-Audited) (Audited) 31 March 30 June Relationship with 2021 2020 Period / year end balances: the Company Rupees in thousand

Due to related parties Associate 33,897 41,578

Due from related parties Associate 4 90,749

Due to / (from) provident fund Employees’ Fund 915 (9)

14. SEGMENTAL ANALYSIS

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the office of the Chief Executive. The Chief Executive considers the business from the product perspective and evaluates performance on the basis of their gross profit or gross loss. As at 31 March 2021, the Company is organized into following two operating segments based on their products.

Juice drinks

Juice drinks segment includes bottled drinks as well as juices in tetra pack packing.

Others

Others include pickles, ketchup, sauces, jams etc. Statement of profit and loss account for the nine month period ended 31 March 2021 (Un-Audited):

Juices and Drinks Others Total Rupees in thousand

Revenue from contracts with customers-net 3,477,519 950,896 4,428,415 Cost of revenue (2,806,077) (701,046) (3,507,123)

Gross profit 671,442 249,850 921,292

Unallocated expenses and income Distribution costs (480,701) Administrative expenses (200,211) Other operating expenses (57,001) Other income 29,045 Finance costs (90,389) Taxation (18,910)

Profit after taxation 103,125 Assets and liabilities as at 31 March 2021 (Un-Audited):


Segment assets 3,415,512 580,117 3,995,629 Unallocated assets 971,788

Total 4,967,417 Segment liabilities 1,106,998 144,576 1,251,574 Unallocated liabilities 1,662,595

Total 2,914,169


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Statement of profit and loss account for the nine month period ended 31 March 2020 (Un-Audited):


Revenue from contracts with customers-net 4,047,385 850,625 4,898,010 Cost of revenue (3,532,213) (792,526) (4,324,739)

Gross profit 515,172 58,099 573,271 Unallocated expenses and income Distribution costs (600,084) Administrative expenses (241,091) Other operating expenses (73,570) Other income 41,275 Finance costs (159,720) Taxation (3,215)

Loss after taxation (463,134)

Assets and liabilities as at 30 June 2020 (Audited):


Segment assets 3,225,830 522,107 3,747,937 Unallocated assets 1,021,200

Total 4,769,137 Segment liabilities 1,109,851 177,994 1,287,845 Unallocated liabilities 1,531,639

Total 2,819,484

15. DATE OF AUTHORIZATION FOR ISSUE

These condensed interim financial statements were authorized for issue by the Board of Directors on 27 April 2021.

16. GENERAL

Figures in these condensed interim financial statements have been rounded off to the nearest thousand of rupees unless otherwise stated.


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NOTES

COMPANY INFORMATION - Shezan

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